There is sure a lot of turmoil in the real estate market, isn’t there? With the crash of the housing market, now pretty much everyone owes more on their home than what it’s worth. As a result, even borrowers once considered low-risk are having a harder time securing a home loan. As a result, many people are finding themselves in a position where they have to rent.
And, as it turns out, that isn’t an ideal situation, either. CNNMoney.com reports that finding a cheap place to rent is becoming a difficult task, as well. According to a report released earlier this week, more and more renters are spending more than half their income on rent and utilities. Also, the number of middle-income renters is going up.
A lot of this is a simple case of supply and demand: Housing costs are going up, making it out of reach for many people; as a result, more people are looking for places to rent, which causes that to increase in price, as well.
Unfortunately, there’s no telling what will happen next, or how long it will take for this latest development to recover. We can only hope that both the rental and the housing market will be soon on the mend.
This post is brought to you by Expert Title Insurance, New York, NY. We would love to connect with you on Facebook and Twitter.
Image courtesy of Tax_Rebate via Flickr
